New York Attorney General Eric Schneiderman filed a lawsuit Friday against three of the nation's biggest banks and Mortgage Electronic Registration Systems over allegedly fraudulent foreclosure actions.
In the complaint, Schneiderman said the creation of MERS led to a system that resulted in homeowners and public servants being unable to track their own mortgages.
MERS, in response, said that is not operating outside the law and that pass judgement will exonerate the validity of the electonic registry's actions.
Schneiderman, who also named Bank of America ($7.45 0%), JPMorgan Chase ($38.40 0.85%) and Wells Fargo ($29.90 0%) as defendants, said the banks "created the MERS system as an end-run around the property-recording system." He said 13,000 foreclosures in the state, where MERS is listed as plaintiff, contain various degrees of misrepresentation.
The lawsuit alleges the system of recording mortgages electronically resulted "in a wide range of deceptive and fraudulent foreclosure filings in New York state and federal courts, harming homeowners and undermining the integrity of the judicial foreclosure process
THE PEOPLE OF THE STATE OF NEW YORK, by ERIC SCHNEIDERMAN vs JPMORGAN CHASE, CHASE HOME FINANCE, EMC MORTGAGE, BANK OF AMERICA, BAC HOME LOANS, WELLS FARGO, MERS and MORTGAGE ELECTRONIC REGISTRATION SYSTEMS